Survey Shows Bed & Breakfast Sector Making Significant Contribution To NZ Economy

The hosted Bed & Breakfast sector added well over $12 million to New Zealand’s economy in 2023-24, according to a new survey of B&B operators.

The survey was carried out by the Bed & Breakfast Association New Zealand, which represents and promotes home-hosted bed and breakfasts throughout the country – including homestays, farmstays, boutique, heritage and luxury accommodation.

“B&Bs fly under the radar in the wider tourism economy, as data showing the size and value of our accommodation is not generally collected in the official statistics, which are focused on larger accommodation providers. But we know that our properties attract the high quality, high-spending visitors that New Zealand wants,” Association President Ann-Marie Johnson says.

Unlike providers of Short-Term Rental Accommodation (STRA), B&B owners host visitors in their own homes, sharing their personal spaces with their guests as they host them around the breakfast table. B&Bs offer a genuine Kiwi hospitality experience that is often the only opportunity for international guests to chat to a local.

Fifty B&Bs from around Aotearoa New Zealand responded to the survey. On average, they operated two-three guest rooms each, with a maximum of eight rooms.

Room rates (double occupancy) ranged from $83-$1300 per night, with the average rate being $305 per night.

“Respondents reported that they sold a total of 38,390 room nights during the year ending 31 March 2024. If we extrapolate this across the B&B sector, it’s clear that our hosted accommodation providers are making a substantial contribution to New Zealand’s tourism economy,” Ms Johnson says.

International bookings accounted for 71%, with five countries providing over half (53%) of B&B guests: The Netherlands (16%), Germany (12%), the UK (11%), the USA (8%) and Australia (6%).

Inbound Tour Operators (ITOs) and travel agents accounted for half of all bookings, while Online Travel Agents (OTAs), led by Booking.com with 32%, contributed 40% of bookings.

Pleasingly, about 60% of B&Bs reported higher occupancy compared to the previous year, indicating growing confidence in travel and demand for the premium hosted experience.

“This is this first sector survey we have carried out since 2019. Having up-to-date and reliable information helps highlight the important part B&Bs play in New Zealand tourism,” Ms Johnson says.

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